During a period of rising prices, which of the following cost flow assumptions will result in the highest cost of goods sold?
A)FIFO
B)Net realizable value
C)Average cost
D)Specific identification

Question

Quizplus · Accepted Answer

During a period of rising prices, the average cost method will result in a higher cost of goods sold compared to FIFO, as it averages out the costs, including the higher recent prices.

During a Period of Rising Prices, Which of the Following